Sustainability Report 2023

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Sustainability Report 2023

Sustainability Material Issues: Targets and Achievements

Governance

Improvement  of our governance structure

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Enhanced the corporate governance structure through appropriate operation of the Board of Directors, evaluated the effectiveness of the Board of Directors using a third-party evaluation organization, and continued implementing the PDCA cycle
  • Built relationships between the Board of Directors and local stakeholders, such as partners and local communities (held Board of Directors meetings in countries in which we operate)
  • Responded to revisions of the Companies Act and the Corporate Governance Code, and to Tokyo Stock Exchange reforms
  • Enhance the corporate governance structure through appropriate operation of the Board of Directors, and evaluate the effectiveness of the Board of Directors and continue implementing the PDCA cycle
  • Continue holding comprehensive discussions in Board of Directors meetings (in particular, active discussions that contribute to formulation of the next Medium-term Business Plan)
  • Strengthen the corporate governance structure, including enhancement of the supervisory role of the Board of Directors
  • Deepen discussions by the Nomination and Compensation Advisory Committee about achieving further diversity in the Board of Directors and about a succession plan for the President & CEO, and provide feedback on those discussions to the Board
  • Continue efforts to achieve the Long-term Strategy and Medium-term Business Plan of INPEX Vision @2022 to realize a net zero carbon society by 2050
  • Published a skill matrix for Directors and Audit & Supervisory Board Members
  • Conducted a site visit to the Ichthys LNG plant in Darwin, Australia, for Outside Directors and Audit & Supervisory Board Members
  • Discussed the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee
  • Expand disclosure of skill matrix details
  • Further enhance the governance structure for the nomination and compensation of Directors
  • Discuss the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee
  • Appoint an Outside Director as the Chairman of the Nomination and Compensation Advisory Committee to strengthen the independence of the Committee.
  • Assessed state of tax compliance in each country through centralized management of tax information
  • Enhance the global tax governance structure through close communication with overseas sites
Improvement of our risk management structure

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Held 28 INPEX Value Assurance System (IVAS) Committee meetings
  • Provided the Board of Directors with an executive summary of risk assessment results for major projects
  • Hold IVAS Committee meetings as needed
  • Report progress and action plans for each of our projects, including the net zero businesses, at the monthly Board of Directors meetings
  • Continue to monitor mitigation/ management plans for material risks and issues identified by each division under the Medium-term Business Plan and their implementation
  • Held two Information Security Committee meetings
  • Held one training session on targeted email attacks
  • Conducted one e-learning lesson on information security
  • Conducted a security assessment of operating systems
  • Hold two Information Security Committee meetings
  • Hold two training sessions on targeted email attacks
  • Conduct one e-learning lesson on information security
  • Conduct a security assessment of operating systems
  • Promoted head office-based business continuity management (BCM) activities for earthquake scenarios, and provided BCM education and training for employees
  • Revised the head office business continuity plan (BCP) for infectious disease scenarios based on verification and assessment of COVID-19 responses
  • Promote head office-based BCM activities for earthquake scenarios, and provide BCM education and training for employees
Supply Chain Risk Management

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Published the Supplier Code of Conduct Guidelines
  • Continued self-assessment surveys (including questions on human rights and anti-bribery and anti-corruption (ABC) measures) by major domestic suppliers and contractors
  • Continued risk assessment of major suppliers and contractors (including with regard to human rights and ABC measures), and improved the methods used for risk assessment
  • Participated in the supply chain subcommittee of the Global Compact Network Japan
  • Held a Supplier Forum
  • Acquired SA8000 Basic Auditor Training Course Completion Certificate (two people)
  • Continue self-assessment surveys (including questions on human rights and ABC measures) by major domestic suppliers and contractors
  • Continue risk assessment of major suppliers and contractors (including with regard to human rights and ABC measures), and improve the methods used for risk assessment
  • Participate in the supply chain subcommittee of the Global Compact Network Japan
  • Conduct CSR audit to suppliers (paper and on-site audits)
  • Hold a Supplier Forum
  • Strengthen supply chain risk assessment and compliance

Compliance

Respect for human rights

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Published respective FY2022 statements pursuant to the United Kingdom Modern Slavery Act 2015 and the Australian Modern Slavery Act
  • Continued to conduct human rights training
  • Worked with external human rights specialists to identify important human rights challenges (10 issues in the oil and natural gas exploration business and 11 issues in the renewable energy business)
  • Publish respective FY2023 statements pursuant to the United Kingdom Modern Slavery Act 2015 and the Australian Modern Slavery Act
  • Continue to conduct human rights training
  • Improve the methods used for risk assessment of major suppliers and contractors (including with regard to human rights)
  • Fully comply with and appropriately respond to the laws and regulations, including ABC laws, of the areas in which we operate, judicial/administrative sanctions, international norms and ethics, and full respect for human rights
  • Continue human rights due diligence
Compliance with laws and prevention of bribery and corruption

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Ensured awareness of compliance and enhanced education and training programs (monthly publication of compliance news, e-learning lessons, officer and manager compliance training, compliance assessments, etc.)
  • Bolstered Group-wide compliance cooperation (continued operation of the INPEX Global Hotline, held a global compliance meeting, etc.)
  • Ensured awareness and enhanced operation of ABC regulations (continued training, due diligence, risk assessments of ABC practices at domestic and overseas offices, etc.)
  • Ensure awareness of compliance and enhance education and training programs (monthly publication of compliance news, officer and executive compliance training, compliance assessments, whistleblower response personnel training, etc.)
  • Bolster Group-wide compliance cooperation (structure development, continuing operation of the INPEX Global Hotline, etc.)
  • Ensure awareness and enhance operation of ABC regulations (continue training, due diligence, risk assessments of ABC practices at domestic and overseas offices and subsidiaries, etc.)
  • Fully comply with and appropriately respond to the laws and regulations, including ABC laws, of the areas in which we operate, judicial/administrative sanctions, international norms and ethics, and full respect for human rights
  • Continue human rights due diligence

Climate Change

Promotion of climate change response goals and disclosures based on TCFD recommendations

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Continued to achieve a CDP Climate Change A- score
  • Achieved net carbon intensity of 28 kg-CO2e/boe in FY2023
  • Achieved methane emissions intensity (methane emissions/natural gas production) of 0.05%
  • Continue to achieve a CDP Climate Change A- score
  • Reduce net carbon intensity by 10% (4.1 kg-CO2e/boe) or more between FY2022 and FY2024
  • Check details of emissions reduction measures in individual projects for achieving the FY2030 target for net carbon intensity
  • Reduce net carbon intensity by 30% or more by FY2030
  • Achieve zero routine flaring by FY2030
  • Maintain methane emissions intensity (methane emissions/natural gas production) at its current low level (about 0.1%)
Promotion of five net zero businesses

 

FY2023 achievements

FY2024 targets

Targets to FY2030

Hydrogen and ammonia
  • Began construction of aboveground facilities for the integrated demonstration testing of hydrogen and ammonia production and utilization in Kashiwazaki City, Niigata Prefecture, Japan
  • Signed a memorandum of understanding for a joint study with the Abu Dhabi National Oil Company (ADNOC), Japan Organization for Metals and Energy Security (JOGMEC), and Mitsui & Co., Ltd. for the verification of GHG emissions at a clean ammonia production project in Abu Dhabi
  • Began pre-FEED work for a large-scale, low-carbon ammonia production project at the Port of Houston, Texas, USA
  • Signed a joint study agreement for a green hydrogen project in South Texas, USA
  • With the aim of beginning operations in 2025, complete construction of aboveground facilities and drill three wells for CO2 injection, production, and observation for the demonstration project of hydrogen and ammonia production in Kashiwazaki City, Niigata Prefecture, Japan
  • Pursue opportunities to participate in clean ammonia project in Abu Dhabi
  • With the aim of beginning commercial production between the late 2020s and around 2030, promote the clean hydrogen and ammonia project in Japan and overseas, starting with the large-scale, low-carbon ammonia production project at the Port of Houston, Texas, USA
  • Commercialize three or more projects
  • Aim for hydrogen and ammonia production and supply of 100,000 tons/year or more

CCUS
  • Conducted Huff & Puff tests for the CO2 EOR demonstration testing in the Minamiaga Field Office
  • Conducted reservoir evaluations, acquired new 3D seismic data, and conducted preparatory work for drilling in the G-7-AP GHG assessment block in Australia
  • The Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS Initiative Project, in which we participate, were adopted under the 2023 Survey on Implementation of Advanced CCS Projects commissioned by JOGMEC
  • Investigate moving to the next phase of the CO2 EOR demonstration testing in the Minamiaga Field Office
  • Acquire new 3D seismic data, drill two evaluation wells, and conduct investigations into updating reservoir evaluations and evaluating CCS feasibility, in the G-7-AP GHG assessment block in Australia
  • Conduct evaluations into CCS adoption at the Ichthys LNG Project
  • Consider and launch new projects in Japan and overseas
  • Achieve annual CO2 injection volume of 2.5 million tons or more
  • Become a leading company in CCUS by promoting technical development and commercialization

Renewable energy
  • Acquired a 50% stake in Enel Green Power Australia Pty Ltd, through which we began a collaboration with Enel Green Power S.p.A. for a renewable energy business in Australia
  • Achieved the renewable energy generation capacity target (500 MW) in the Medium-term Business Plan

 
  • Secure 1–2 gigawatt-scale installed capacity, mainly in the offshore wind and geothermal power generation business
  • Accelerate business expansion using assets acquired through M&A and other means as a platform

(i) Wind power generation
  • Made the final investment decision (FID) for a floating offshore wind power project off Goto City, Nagasaki Prefecture, Japan
  • Began investigations into domestic offshore wind power project tenders from next fiscal year
  • Develop a domestic offshore wind power project
  • Ensure stable operations and expand business at European wind power projects
  • Generate business opportunities in Southeast Asia, Australia, and the Americas

(ii) Geother­mal power generation
  • Established and enhanced a project promotion structure in Indonesia
  • Began construction for the Oyasu Geothermal Power Project in Akita Prefecture, Japan
  • Carry out additional development at Muara Laboh Geothermal Power Project in Indonesia
  • Progress construction for Oyasu Geothermal Power Project
  • Progress geothermal exploration activities in Indonesia, Japan, and other regions

Carbon recycling and new business
  • Began construction of a methanation test facility (400 Nm3/h) in Nagaoka City, Niigata Prefecture, Japan
  • Currently working with Masdar, Tokyo Gas Co., Ltd., and Osaka Gas Co., Ltd. on a joint feasibility study to produce e-methane in Abu Dhabi
  • Signed a joint feasibility study agreement with Masdar for a carbon recycle chemicals production project in Abu Dhabi
  • Conducted 14 drone demonstration testing flights to inspect our facilities
  • Invested in TeraWatt Technology Inc. (developing next-generation lithium-ion batteries), Kyoto Fusioneering Ltd. (accelerating development of fusion energy), and OCOchem (developing green formic acid production technologies)
  • Construct a plant as a methanation technology development project with the aim of beginning operation during 2026
  • Complete the business feasibility study for an e-methane project in Abu Dhabi, and decide whether to move to the pre-FEED stage
  • Pursue further R&D in artificial photosynthesis
  • Use drones to inspect our facilities
  • Promote collaborations with venture companies in which we have invested
  • Promote the adoption of methanation in society
  • Supply about 60,000 tons of synthetic methane annually via our pipeline network

Forest conservation
  • Acquired credits for outstanding forest conservation projects and investigated participating in the projects
  • Began planting trees for a carbon farming and renewable biofuel project in Australia in conjunction with Australia and New Zealand Banking Group Limited (ANZ) and Qantas Airways Limited
  • Participate in and pursue development opportunities for forest conservation projects
  • Acquire about 1.5 million tons of forestation credits per year from leading forest conservation projects
  • Secure about 2 million tons of forestation credits per year from forest conservation projects by FY2030 through project participation, development, etc.
Cleaner oil and gas business and transition to natural gas

 

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions

Australia
  • Confirmed that the Ichthys LNG Project has increased the capacity of the facility to produce 9.3 million tons per year. In addition, promoted low-carbon operations by minimizing flaring and fuel gas emissions during production
  • Aim to produce 9.3 million tons per year at the Ichthys LNG Project through safe operations and improved facility utilization rates. Also, continue promoting low-carbon operations
  • Increase natural gas ratio of portfolio by raising natural gas investment ratio to about 70%
  • Make our projects cleaner by achieving zero routine flaring, introducing CCUS and renewable electricity, conserving energy, utilizing forestation credits, etc.

Indonesia
  • Received approval from the Indonesian government for a revised plan of development for the Abadi LNG Project to incorporate a CCS component (plan to eliminate all CO2 emissions associated
  • Promote various surveys, studies related to CCS, preparation of basic design work (FEED), and other necessary preparations for final investment decision (FID)

Abu Dhabi
  • In addition to using 100% clean power at onshore facilities, worked with ADNOC to adopt clean power, including using onshore clean power to supply offshore facility power needs
  • Aim to further reduce production costs by optimizing personnel allocation and introducing new technologies, and supply offshore facilities with clean power

Norway
  • Began power provision from the Hywind Tampen floating wind farm to the Snorre oil field, and converted a portion of the electricity required for production and operation of the oil and natural gas production plant to clean power by using electricity supplied from the wind farm
  • Gain knowledge through stable operation and continuous monitoring of the Hywind Tampen floating wind farm, and consider low-carbon projects based on the information gathered on renewable energy, hydrogen, and CCUS projects.
  • Expand the volume of carbon neutral gas sold.

HSE

Prevention of major incidents

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Reduced the number of incidents by: issuing incident bulletins; drawing lessons from incidents; statistically analyzing and benchmarking incidents; strengthening incident cause investigation; and planning and implementing a Group-wide “safety month” campaign from September to October 2023
  • Steadily implemented the process safety management roadmap (identified necessary Group-wide process safety management-related competencies, published change control requirements, etc.); held process safety workshops with ADNOC; and provided support for the Hirai Blue Hydrogen project and addressed challenges through third-party committees
  • Began implementing HSE management for the five net zero businesses, including the geothermal business
  • Strengthen incident prevention efforts by: issuing incident bulletins; drawing lessons from incidents; strengthening contractor HSE management; implementing a “safety month” campaign; and implementing LSRs, PSFs, and other internal campaigns
  • Formulate and implement management methods for achieving Group-wide process safety management-related competencies, confirm process safety risks associated with the Ichthys LNG Project, and adopt process safety management in design and operational readiness in the hydrogen and CCUS fields
  • Continue implementing HSE risk management and HSE management for the five net zero businesses
  • Ensure compliance with LSRs for safety in high-risk operations, strengthen process safety management, and completely eliminate major incidents
  • Carry out the following actions that further improve HSE management:

    1. Strengthen incident prevention efforts
    2. Further improve process safety management through systemic programs
    3. Help to address global environmental challenges and create environmental value
    4. Prepare for emerging threats
    5. Reinforce health management and measures for infectious diseases
    6. Demonstrate HSE leadership and improve effectiveness of the HSEMS
    7. Enhance HSE competency and secure personnel
    8. Implement HSE management for the five net zero businesses
Securing of occupational health and safety

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions
  • Demonstrated HSE leadership by: coordinating between corporate divisions and operator projects; holding an HSE Forum; and conducting 11 management site visits
  • Strengthened health management by: standardizing health management activities; strengthening mental health management; and standardizing infectious disease management
  • Demonstrate HSE leadership by: reinforcing coordination between corporate divisions and operator projects; holding an HSE Forum; and conducting management site visits
  • Strengthen health management by: standardizing health management activities; strengthening mental health management; and standardizing infectious disease management
  • Ensure compliance with LSRs for safety in high-risk operations, strengthen process safety management, and completely eliminate major incidents
  • Carry out the following actions that further improve HSE management:

    1. Strengthen incident prevention efforts
    2. Further improve process safety management through systemic programs
    3. Help to address global environmental challenges and create environmental value
    4. Prepare for emerging threats
    5. Reinforce health management and measures for infectious diseases
    6. Demonstrate HSE leadership and improve effectiveness of the HSEMS
    7. Enhance HSE competency and secure personnel
    8. Implement HSE management for the five net zero businesses
Biodiversity conservation and water risk management

 

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions

Biodiversity conservation
  • Conducted nature readiness self-assessments and identified challenges with our nature-related initiatives
  • Conducted trial evaluations at our domestic projects based on TNFD’s LEAP approach
  • Updated the database of protected areas for our project areas
  • Conduct evaluations based on TNFD’s LEAP approach for all operator projects
  • Identify impacts and dependencies, and risks and opportunities, related to biodiversity
  • Establish quantitative targets for biodiversity
  • Implement biodiversity conservation initiatives in our project areas
  • Ensure compliance with LSRs for safety in high-risk operations, strengthen process safety management, and completely eliminate major incidents
  • Carry out the following actions that further improve HSE management:

    1. Strengthen incident prevention efforts
    2. Further improve process safety management through systemic programs
    3. Help to address global environmental challenges and create environmental value
    4. Prepare for emerging threats
    5. Reinforce health management and measures for infectious diseases
    6. Demonstrate HSE leadership and improve effectiveness of the HSEMS
    7. Enhance HSE competency and secure personnel
    8. Implement HSE management for the five net zero businesses

Water risk management
  • Updated water stress assessments in our project areas
  • Assessed the current state of water balance and aggregated/analyzed data on the volume of freshwater/seawater intake and use in our projects
  • Considered quantitative targets for water management
  • Conduct evaluations based on TNFD’s LEAP approach for all operator projects
  • Identify impacts and dependencies, and risks and opportunities, related to water management
  • Establish quantitative targets for water management

Local Communities

Implementation of assessments of impact on local and indigenous communities and measures to reduce impact

 

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions

Japan
  • Maintained positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of newsletters
  • Maintain positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of newsletters
  • Contribute to local development and the addressing of social issues through our business activities, while respecting human rights and the cultures and customs of the areas in which we operate
  • Understand and respond to community needs through dialogue with stakeholders in the areas in which we operate

Australia
  • Maintained positive relationships with government agencies, industry groups, and local stakeholders through more than 300 dialogues
  • Maintain positive relationships with stakeholders through proactive dialogue
Contribution to local economies

 

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions

Global
  • Invested approximately 4.4 billion yen in social contribution initiatives
  • Continue investment in social contribution initiatives in response to the needs of local communities
  • Contribute to local development and the addressing of social issues through our business activities, while respecting human rights and the cultures and customs of the areas in which we operate
  • Understand and respond to community needs through dialogue with stakeholders in the areas in which we operate

Australia
  • Developed and started to execute Reconciliation Action Plan (RAP) 2023–2025
  • Directly employed 52 Aboriginal and/or Torres Strait Islander people and indirectly employed about 130 people on average through contractors, as of the end of FY2023
  • Procured more than A$ 8.2 million of goods/services from 16 Aboriginal and/or Torres Strait Islander businesses, as of the end of FY2023
  • Achieve targets set in Reconciliation Action Plan (RAP) 2023–2025
  • Continue to implement our social contribution strategy

Human Capital

Making INPEX the best place to work 

 

FY2023 achievements

FY2024 targets

Medium- to long-term targets, initiatives, and directions

Global
  • Held a symposium with past recipients of the Value Awards as part of efforts to promote INPEX Values
  • Provided opportunities for overseas office employees to be assigned to our headquarters (seven employees from Australia)
  • Continue promoting INPEX Values (Value Awards Symposium)
  • Provide opportunities for overseas office employees to be assigned to our headquarters (expand the number of applicable overseas offices)
  • Implement programs and establish a corporate culture that cultivates employee satisfaction and engagement
  • Expand support for employee career development
  • Create a workplace environment that supports needs for diverse workstyles and employee well-being

Japan
  • Adopted a job- and role-focused personnel system for regular employees and employees working under reemployment contracts
  • Secured human resources by increasing recruitment of new employees
  • Overhauled the employee benefit program (introduced Cafeteria Plan)
  • Continue promoting specific measures tied to the human resources strategy
  • Promote measures to advance female employees as part of efforts to promote diversity, equity, and inclusion (DE&I)
  • Adopt a talent management system (personnel evaluation, succession planning, etc.)

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